How Protected Are You Online?

Did you know fraudsters could take out loans in your name,
without you even knowing?

In a case recently reported in The Guardian, an individual from
Essex got a rude shock when they received a letter from a lender indicating he
had taken out a payday loan.

Payday loans are short-term, high-interest loans for those who
need smaller amounts of money urgently.

In this case, the individual, let’s call him Frank, received a
letter in the post from Lending Stream. It said he owed them £440.

It turns out, somebody had taken out a payday loan in Frank’s
name, combining his name, address and date of birth with their own bank
account, mobile number and email address. The amount due for repayment had
already doubled by the time Frank was informed.

It took Frank days to get through to Lending Stream’s fraud
department. He was promised callbacks that never came and continually got hung
up on.

Frank was obviously concerned, as his credit rating had been
significantly damaged by actions that were not his own (and he had £440 in
debt!).

Finally, Frank got through to Lending Stream and filled in an ID
theft affidavit form. He will have to wait 45 days for his credit rating to
return to normal.

It is extremely concerning how easily a fraudster was accepted
for a loan, using just a few basic details, and an online application process.

It is no wonder that complaints to the Financial Ombudsman
service about payday lenders have tripled in the past year.

Frank’s case, if nothing else, reminds us just how important it
is to stay savvy online.

Some tips include: Keep your details secure by having
difficult-to-guess passwords, and different ones, on each platform. Install a
good anti-virus programme on your computer. Ensure your phone and devices are
passcode-protected. Only use secure websites and online shopping. Stay
up-to-date with scams and what’s going on online. And never give out your
personal details, unless you are certain that you are in fact talking to an
organisation or individual you trust (e.g. just because your ‘bank’ calls
doesn’t mean it is really them).

Frank’s experience is also a reminder that many payday loan
companies are not so trustworthy or secure. Would you risk your credit rating
with a company that will grant a loan to a fraudster, with no checks in place?
We wouldn’t!

If you feel you have been unfairly granted a payday loan that
you couldn’t afford to pay back, our financial claims department may be able to
help.

Get in touch by phoning 0345 373 3737, emailing marketing@gw.legal or by filling out our
online enquiry form.